Home > Term: credit linked security
credit linked security
A note whose cash flow depends upon a credit event or credit measure of a referenced entity or asset such as default, credit spread, or rating change. The manager would purchase such a note to hedge against possible down grades, or loan defaults that would guarantee payment into the portfolio of the manager even if moneys on referenced assets are reduced.
- Besedna vrsta: noun
- Industrija/področje: Financial services
- Category: General Finance
- Company: Bloomberg
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